🔥Complete personal analysis of "market capitalization" and "high dividend":
🍀Which one is better to invest in? The most important thing is to choose the one that suits you‼ ️
🔺Market capitalization strategy "S&P 500, Taiwan 0050"
🔹Advantages:
1. Usually choose growth-oriented enterprises with high "value-added potential" in the long term.
2. S&P 500 covers 500 large companies, while Taiwan 0050 covers 50 large companies in Taiwan (TSMC accounts for about 51%), with diversified risks
3. Investing in "market capitalization" means investing in the world's leading companies! Higher earning potential
4. Suitable for long-term investment, the long-term "return rate/win rate" is relatively high
🔸Disadvantages:
1. The "short-term" volatility is relatively large, while the "long-term" is stable and upward.
2. You need to be "patient" and hold for a long time to obtain expected returns. Short-term returns are relatively unstable.
3. Changes in the overall market will have an impact on the "investment portfolio"
🔺High Dividend Strategy "Taiwan High Dividend 0056"
🔹Advantages:
1. Provide "stable cash flow" suitable for investors who need "fixed income" to pay daily expenses such as living expenses/mortgage
2. They are usually mature companies with relatively small stock price fluctuations.
3. Taiwan’s tax on high dividends is relatively favorable
🔸Disadvantage: "Value-add potential is usually lower than that of growth stocks"
📌Pursue long-term value-added/can withstand market fluctuations, suitable for market capitalization types
📌The pursuit of "stable cash flow" is suitable for high dividend investments
⚡️Which one do you belong to? Welcome to discuss together
